It is the second largest steel manufacture in the U.S.
Is currently in the process of using electric arc furnaces instead of furnaces that use coke
Has developed the mini mill to handle the thin slabs and fastener manufacturing
Nucor started their steel mill manufacturing in 1968, setting a new direction for Nucor after several years of losses in the nuclear instrument and electronics business.
In 1972, Nucor initiated a long-term strategy that would allow Nucor to grow as a major leader in the U.S. Steel Industry.
By 1985, Nucor was the seventh largest steel producer in the U.S. with state of the art technology and electric arc furnaces, to produce new steel products from scrap metal.
By 2006, Nucor was the second largest steel manufacture in the U.S. and was the most profitable steel manufacture by earning revenues of $14 billion dollars and a net profit of $1.4 billion dollars.
“Taking care of our customer’s means taking care of everyone we impact: our Teammates, our shareholders, our communities and the people who purchase and use our products.”
The current problem is the flooding of imported steel and excess of steel dumping in the U.S. coming in from global competitors causing the steel prices to drop drastically with very little sanctions from the U.S. government to offset the downturn of the industry.
The industry environment is volatile, due to the recession and the weakening of the dollar; Nucor faced uncertain times ahead.
Another problem is the hard rolled sheet metal market is the weakest because of the combined impact of surging imports and severe inventory correction underway in the energy pipe and tube sector.
Merging foreign steel company’s and U.S. companies saturate the market driving the price per ton down by 1% with operating losses of approximately $44 million dollars.
Continue with merger acquisitions
Increase joint ventures with foreign producers
Increase aggressive technological advancements in the steel industry.
Improved the efficiency of mini-mills
Increased acquisitions in the U.S. market The purchase of Gallatin Steel at the end of 2014 The steel mill segment expected to improve as soon as lowering cost of raw materials is established with greater stability in the steel prices.
2. External Analysis Key Questions: (4)
What are competitive and environmental forces impacting the industry?
How are the forces shaping the industry?
What factors are most critical to competing successfully in this industry?
Harrison Steel Group
All of these rivals are major players in the steel industry, and pose a viable threat to under biding and mass production in mini mills. This will cause the price of steel to drop and slice profit margins by providing competitive price.
The forces are shaping the industry through thick competitive forces from mainland and overseas. Nucor industry has been trying to get the World Trade Organization to set stiffer sanctions on oversea industries from dumping excess metals in the U.S. and to keep the price of steel from dropping.
Overseas distributors like China were paying subsides to steel exporters.
The conversions to electric arc furnaces from coke furnaces in overseas plants
The thin slab technology was adopted globally because of the benefits it held for lower capital cost.
Domestic competitors were acquiring acquisitions with other failing steel manufactures in order to increase their own outputs of steel.
The major threat came from Arcelor Mittal and foreign steelmakers based on exporting their goods to the